FOR

FORR01 STG

Civil Forfeiture

In connection with a Civil Forfeiture under 21 U.S.C. § 881, the Company requires for its review satisfactory evidence of the following: a.The court issued an order for the warrant of arrest of the land; b.The complaint requested forfeiture of the specific land and alleged specific bases for forfeiture; c.All owners and lienholders (including spouses with marital or community property rights) of the land who are not executing deeds or releases received notice by personal service as evidenced by a review of the process receipt and return; d.The government published notice of the proposed forfeiture in the federal district where the land is located (and the district where the proceeding occurs, if a different district); e.An order authorized forfeiture of the specific land; f.The order is final and nonappealable. Finality may be evidenced by a letter from the United States Attorney’s Office or other knowledgeable party; g.The forfeiture occurred in the federal district where the land is located or in the district where criminal prosecution, if any, of the owner occurred; h.If an owner of the land has been subject to criminal prosecution, that prosecution must be final and no longer subject to appeal; I.Recordation of certified copies of the order for warrant of arrest, order of forfeiture and evidence of personal notice in the local real property records; j.Verification by affidavit or inspection that no one is in possession of the land (except through the United States); k.Disclosure in writing to the proposed insured that the forfeiture is in the chain of title; At that time, the Company may make additional requirements or exceptions. Comment: The Company’s guidelines for forfeitures are detailed because the Company considers subsequent insurance to be an extrahazardous risk.

FORR02 STG

Criminal Forfeiture

In connection with a Criminal Forfeitures under 21 U.S.C. § 853 and 18 U.S.C. § 1963, the Company requires for its review satisfactory evidence of the following: a.The indictment sought forfeiture of this specific land by identifiable legal description; b.The government secured a criminal conviction of the defendant owner; c.The court order authorized forfeiture and seizure of the land; d.All parties (including spouses with marital or community property rights) who are not defendants in a criminal action and who are not executing deeds or releases received personal notice; e.Notice of the proposed forfeiture was published in a newspaper of general circulation; f.The United States filed a motion for final order of forfeiture; g.The court entered a subsequent final order of forfeiture; h.The “final” (second) order of forfeiture is final and nonappealable; i.The conviction is final and nonappealable (verify by a letter from the United States Department of Justice or other knowledgeable party); k.Recordation of certified copies of the indictment and orders of forfeiture in the local real property records; l.Verification by affidavit or inspection that no one is in actual possession of the land (except through the United States); m.Disclosure in writing to the proposed insured that the forfeiture is in the chain of title. At that time, the Company may make additional requirements or exceptions. Comment: The Company’s guidelines for forfeitures are detailed because the Company considers subsequent insurance to be an extrahazardous risk.